NPD Jargon Buster: Derivative projects

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A derivative project is a spin-off from another existing product or platform.

A derivative project is a spin-off from another existing product or platform. A derivative project is a spin-off from another existing product or platform.
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A derivative project is a spin-off from another existing product or platform. It may fill a gap in a current product line, offer more cost-competitive manufacturing, or offer enhancements and features based on the core organisation's technology. Generally, it is a relatively low risk in product development. For example, a cell phone company may develop a new messaging app that fills a gap in its current offerings. Or, a company that manufactures home appliances may create a line of products that are more energy-efficient than its current lineup. In both cases, the new products are based on existing technology and thus require less investment to bring to market. As such, they represent a lower risk for the companies involved. As a result, derivative projects can be highly successful, allowing organisations to tap into new markets with relatively little investment. However, they can also fail if the underlying technology is not well-suited to the target market's needs. Thus, launching a successful derivative project requires careful planning and execution.

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A derivative project is a spin-off from another existing product or platform. It may fill a gap in a current product line, offer more cost-competitive manufacturing, or offer enhancements and features based on the core organisation's technology. Generally, it is a relatively low risk in product development. For example, a cell phone company may develop a new messaging app that fills a gap in its current offerings. Or, a company that manufactures home appliances may create a line of products that are more energy-efficient than its current lineup. In both cases, the new products are based on existing technology and thus require less investment to bring to market. As such, they represent a lower risk for the companies involved. As a result, derivative projects can be highly successful, allowing organisations to tap into new markets with relatively little investment. However, they can also fail if the underlying technology is not well-suited to the target market's needs. Thus, launching a successful derivative project requires careful planning and execution.

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